Traders Turn Bullish On Stellar: XLM Price Analysis

Traders turn bullish on Stellar after the altcoin increased by 20 percent before dumping a chunk of its gains. The previous week, Stellar (XLM) made headlines as the Stellar Development Foundation announced that it burned 55 billion XLM coins to reduce the circulating supply. The announcement of the burning of the 55 billion resulted in an impressive growth that made XLM climb over 30% in less than two days as we read in the XLM news today.

The cryptocurrency gave up most of its gains. Clever investors used the surge as a once in a lifetime chance to lock in profits, resulting in the loss of bullish steam by Stellar Lumens. Then the crypto nosedived to $0.07. That was the price for which XLM has been traded before the announcement triggered the surge.

There were those that waited for the pullback and were rewarded and those that bought due to FOMO (fear of missing out) and got burned. Gains of over 20% in four days were achieved by stellar as the traders turn bullish once again. Analysts say the crypto is bullish beside the recent slide. XLM is considered as one of the two most bullish large-cap coins by trader Beastlorion.

The vice president of LeanCrypto.io, Nick Hellman, thinks that Stellar Lumens is bullish as well, sharing the view of Beastlorion. The analyst characterized, on Monday evening, the slide after the reducing as “healthy”:

 “I think the bull market for XLM has already begun. It formed a nice base during September and has been in an uptrend ever since. I looked at the chart and saw that Stellar Lumens built a strong base above $0.058 in September. This enabled the pair to paint a double bottom reversal pattern.”

In addition, Hellman said:

“There will be some short-term volatility due to some major fundamental news; including the elimination of network inflation and 55 billion coins being burned. But, once the dust settles it will still resolve to the upside.”

It’s possible that today’s drop in Stellar’s price might be an opportunity for some investors. If Nick Hellman is correct, we might see Stellar perform well in the next few weeks. Today’s fall of Stellar could be an opportunity for some investors. If the Vice president of LeanCrypto.io, Nick Hellman is right, we can see the good performance of Stellar in the next few weeks.